N.A. Approves CPP Levy Bill 2025 Without Debate

Islamabad, May 24 — The National Assembly swiftly passed the Off the Grid (Captive Power Plants) Levy Bill, 2025, via a supplementary agenda and without debate, a move orchestrated by Minister for Petroleum Division Ali Pervaiz, as reported by Dawn. This bill, providing a legal basis for a grid levy on natural gas or imported liquefied natural gas (LNG) supplied to industrial captive power plants (CPPs), raced through all stages in a single day, just before the federal budget for the next fiscal year, after House rules were suspended.

Following the May 17 approval of the Income Tax (Amendment) Bill 2024, the Standing Committee on Petroleum, led by Mustafa Mehmood, endorsed the bill minutes before the session, paving its path. Despite opposition challenges, a 99-44 vote after a headcount quashed resistance. Minister Pervaiz briefed the committee, tying the bill to Pakistan’s commitments under the International Monetary Fund (IMF) Extended Fund Facility (EFF), noting the delayed phase-out of captive power due to political and economic hurdles. He stressed transitioning industries to the national grid to optimise surplus electricity, boost efficiency, and ease economic strain, assuring industry safeguards post comprehensive consultations.

The government had earlier imposed the policy via an ordinance, hiking gas rates by 23% for CPPs in March, now expiring, necessitating parliamentary approval. As a money bill, it bypassed Senate approval, though the Senate’s finance committee nodded it through on May 16 without recommendations. Web context highlights IMF pressure on energy reforms (web ID: 0), while posts found on X show anger—some decry the lack of debate, others fear industry costs. Critically, the narrative of “efficiency” may mask economic risks—web sources note power sector debts, and X sentiment suggests public distrust in IMF-driven moves, hinting at potential backlash.